No marriage is perfect, and virtually all married couples will go through their fair share of disputes. However, there is one particular dispute that experts say is a pretty good indicator of future divorce. North Carolina couples who frequently fight over money are far more likely to get divorced than those who do not.
A difference in risk aversion
Everybody has their own personal preference when it comes to taking financial risks. Things can get tricky when two spouses have wildly different risk aversions, though. In many cases, married couples go through something called preference assimilation, a process in which their attitudes toward financial risk taking becomes more similar over time.
North Carolina spouses who do not adopt similar viewpoints on financial risk and regularly engage in conflict over money are twice as likely to file for divorce. In fact, researchers found that financial disputes are actually the strongest predictor of divorce. Couples who have different financial risk preferences but do not get divorced also have added challenges, including being less likely to:
- Meet large financial goals
- Purchase a home
- Renovate a home
When financial disputes are a significant contributing factor in a couple’s marriage coming to an end, chances are good that preserving financial stability will be a priority during divorce. Many people are unsure of where to start with this, though. Focusing on property division and possible support payments are generally a good place to begin, but it is also worthwhile to speak with a knowledgeable attorney about all of one’s options.
